Buyer’s Closing Costs

When buying a home, you will be responsible for paying a number of closing costs. You will have to pay for the title insurance, which is an insurance which protects you when you purchase the home to ensure that no one else has any interest in the property other than you. If you have a mortgage, of course, your lender will have an interest in the home.

Another cost that you will be responsible for taking care of upon purchasing a home is to obtain a survey of the property you have just bought. A survey allows us to determine if there are any encroachments or impediments on the property to make sure that the home is within the proper boundary lines. This is also beneficial in determining whether pieces of your neighbor’s property, such as a deck, are actually on property that you own. In addition, you will need recording costs. Recording costs are for recording documents that we get from a seller at the time of the closing, such as a deed, as well as documents we get from your lender, such as the mortgage.

You will also be responsible for paying an attorney’s fee. At closing, you will, in most cases, have to pay real estate tax escrow and homeowner’s escrow. Now, based upon my experience, the real estate escrow will be approximately five months of the yearly taxes, and the homeowner’s escrow will be two months of their yearly taxes. Other than those closing costs, you will incur a closing cost imposed by your lender, which the lender can provide you when you speak to them about your mortgage.

When you are considering buying a home, you should contact an experienced real estate attorney who can provide you with detailed information about your particular circumstances.

Joseph Gachko, Esq. is an experienced New Jersey attorney who can assist you in any of your real estate-related legal matters. If you require legal counsel for your real estate matters, please contact The Law Office of Joseph Gachko today to set up a consultation.